Thailand urged to expand tax cuts for rooftop solar panels

The IEEE Power and Energy Society in Thailand is urging the government to expand its new tax reduction scheme for rooftop solar panel installations, aiming to boost the adoption of clean energy.

Designed to offer tax incentives to 90,000 households from this year to 2027, the scheme is awaiting final approval within the second half of the year.

Households purchasing solar panels with a power generation capacity under 10 kilowatts and costing less than 200,000 baht are eligible, as per the Department of Alternative Energy Development and Efficiency.

A member of the IEEE Power and Energy Society and director of Naresuan University’s School of Renewable Energy and Smart Grid Technology, Nipon Ketjoy, stated that the scheme should accommodate more participants due to the high demand for solar power.

Thailand’s 2024 national power development plan, expected to be approved next month, aims for renewable energy to constitute 51%, or 73.2 gigawatts, of the total power supply by 2037, up from 20% last year.

Nipon emphasised the importance of including small and medium-sized enterprises (SMEs) in the tax reduction scheme to alleviate their electricity costs amid the economic slowdown.

“Power bills are part of their operating costs. The government should not ignore their participation to benefit from the tax reduction.”

He acknowledged the Finance Ministry’s potential hesitation to aid SMEs, noting that while some can afford solar power technology, others require financial support.

Nipon added that if the latter is given the aid, they could better deal with energy costs, which could lead to business growth and higher tax collection for finance officials.

An official from the Department of Alternative Energy Development and Efficiency highlighted that Prime Minister Paetongtarn Shinawatra and her Cabinet must decide whether to adjust the scheme to include SMEs.

The scheme, with a budget of 20.2 billion baht, is projected to reduce electricity consumption by 585 million kilowatt-hours annually, according to the department.

A local solar panel distributor, New Energy Plus Solutions Co, previously expressed support for the tax reduction scheme as a means to lower carbon dioxide emissions, reported Bangkok Post.